Page 18 - The Compass

Higher crude oil prices, production gains positive for upstream players

Even if Iranian production is curtailed, the OPEC+ decision to ramp up production implies other supply would compensate

CIL earnings may stay under pressure amid weak volumes, market share loss

CIL earnings may stay under pressure in FY26 due to weak volumes, lower e-auction prices, rising costs, and growing market share of captive and commercial miners

Increased fresh order inflows key to the growth of construction companies

Some of the key award recipients in May included DR Agrawal Infracon (₹4,100 crore), Larsen&Toubro (₹ 3,800 crore), NCC (₹2,500 crore) among others

Pickup in digital margins could help Tata Communications stock rerate

Analysts calculate that data revenue of ₹27,300 crore in FY28 is possible, given growth in digital portfolio due to megatrends like cloud, AI, IoT etc

Power utilities: Valuations down on likely dim show in first half of FY26

NTPC Green's acquisition of Ayana (2.1 GW) and JSW Energy's KSK Mahanadi buy (1.8 GW) helped meet capacity addition targets

Cement industry eyes demand revival amid looming capacity surplus

The lagged impact of fuel price increases of Rs 50-100 per ton during January-April'25 will be seen in H1FY26 given inventory, with higher exposure to petcoke usage impacted more

Margins likely to improve for city gas distribution majors on price cuts

LNG prices may remain muted over the next 3-4 years due to new LNG capacity and bearish crude oil trends

Strong order visibility likely to help shipyard stocks sail faster

The DAC plans to order three Kalvari-class submarines with Mazagon Docks (MDL) on a nominated basis in FY26 at an order value of Rs 36,000 crore

New initiatives, margin gain hopes positives for logistics major Delhivery

The expectations for service operating profit margin in PTL is set to reach 16-17 per cent, excluding yield improvements, driven by volume growth

Demand, margin concerns likely to weigh on Tata Motors in near term

The prospects are good enough for analysts to marginally hike EPS estimates by 3 per cent or so for FY25. The stock trades at an estimated 19-20x of FY25 estimated EPS.

Strong volume growth and rich valuations for Varun Beverages' stock

Revenue grew 29 per cent Y-o-Y to Rs 7,330 crore which was below expectations. Volume grew to 402 million cases, up 28 per cent

Investors pin hope of govt support amid under-recoveries of BPCL, HPCL

HPCL has commissioned 126 new retail outlets, bringing the total outlets to 22,148

Maintaining premium growth, sustained margins key for ICICI Prudential Life

The agency growth was driven by the addition of more than 12,000 agents, plus the launch of new products

Rerating potential in Axis Bank stock, may be among top outperformers

Axis Bank may be capable of growing faster than peers and it may see a decline in operating expenses ratio from current levels

Valuations may offset Q4 show, growth outlook for Divi's Laboratories

The company delivered a strong revenue and operating performance in the March quarter

Volume recovery crucial for Marico's growth in FY25, stock gains

The premium and urban segments continued to outperform rural and mass segments

REC: Powering ahead on strong results in Q4 and a healthy outlook

REC has also diversified its loan portfolio with a mandate of up to 33 per cent of loans in Infrastructure and Logistics

Strong execution key for Tech Mahindra to achieve three-year targets

The investments are likely to halve in FY26 and normalise by FY27

Good Q4, commentary perk up ICICI Lombard General Insurance stock

Investment yields could be around 8.1 per cent in FY25 rising to 8.5 per cent in FY26

AMCs likely to report strong gains in Q4FY24 on back of AUM growth

The share prices of listed asset management companies have outperformed the benchmark Sensex and analysts remain positive on the sector